Greenlam Industries Limited Earnings Summary — Q1 FY2027
Greenlam Industries Reports Mixed Q1 Performance Amid Strategic Capacity Expansion and Interest Pressures
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 7.1% sequentially in Q1 FY2027.
- Revenue of ₹797 Cr is 18.2% higher year-on-year.
- Revenue has compounded at 11.5% annualised over the last 10 quarters.
- Net profit of ₹21 Cr is 238.7% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -31.2% annualised across the period.
- Operating margin stands at 10.0% in Q1 FY2027.
- Operating margin expanded by 348 bps year-on-year.
- Over the last two years operating margin has contracted by 57 bps.
- PBT margin is 3.9%.
- Expense growth of 13.8% remained below revenue growth of 18.2%.
- Operating profit of ₹80 Cr is 81.1% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 61/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 797 | 858 | 706 | 808 | 674 | 682 | 602 | 681 | 605 | 624 |
| Expenses | Improving | 717 | 749 | 638 | 704 | 630 | 618 | 539 | 599 | 541 | 541 |
| Operating Profit | Volatile | 80 | 108 | 68 | 104 | 44 | 64 | 64 | 81 | 64 | 84 |
| Operating Margin | Stable | 10.0% | 12.6% | 9.7% | 12.9% | 6.5% | 9.4% | 10.6% | 12.0% | 10.6% | 13.4% |
| Other Income | Volatile | 6 | 2 | -4 | 1 | 2 | — | 1 | 8 | 3 | 9 |
| Interest | Improving | 19 | 23 | 23 | 24 | 26 | 20 | 16 | 16 | 14 | 13 |
| Depreciation | Improving | 35 | 35 | 36 | 36 | 35 | 33 | 27 | 27 | 26 | 26 |
| Profit Before Tax | Volatile | 31 | 52 | 6 | 46 | -14 | 11 | 21 | 47 | 27 | 53 |
| Tax | Volatile | 10 | 12 | 6 | 14 | 1 | 9 | 9 | 13 | 7 | 12 |
| Net Profit | Volatile | 21 | 39 | -0 | 32 | -15 | 2 | 13 | 35 | 20 | 41 |
| Net Margin | Volatile | 2.7% | 4.6% | -0.0% | 4.0% | -2.3% | 0.3% | 2.1% | 5.1% | 3.4% | 6.6% |
Key Takeaways
- Consolidated revenue grew 18.2% YoY to ₹796.70 Cr, driven by scaling operations in Laminates and initial contributions from the Panel segment.
- Profitability remains under pressure with Standalone Net Profit declining nearly 9% YoY and 53% QoQ to ₹22.51 Cr.
- Laminates & Allied Products remain the primary revenue driver, contributing ₹596.10 Cr (Consolidated) for the quarter.
- The new Panel & Allied Products segment reported a loss before tax and interest of ₹3.06 Cr on revenues of ₹94.60 Cr, reflecting gestation costs.
- Finance costs remain elevated due to the company's aggressive debt-funded expansion cycle, impacting bottom-line margins.
- Brownfield expansion for Laminates at the Naidupeta Plant (2.0 Mn Sheets/Boards) is on track for Q4 FY27 commissioning.
- Foreign exchange volatility resulted in a net loss of ₹1.26 Crores under other expenses, despite a gain on revaluation of ECBs.
Management Guidance
The company is focused on its brownfield expansion of Laminate manufacturing capacity in Andhra Pradesh, with commercial production expected by Q4 FY27. Long-term strategy involves transitioning into a holistic 'surfacing solutions' conglomerate despite short-term margin compression from interest and depreciation.
Sentiment Shift
Stable
While revenue growth continues, the expected pressure from the high-capex cycle and new segment gestation is manifesting in compressed margins and lower PAT, consistent with the long-term strategic shift.
Outlook
Greenlam is navigating a heavy commissioning phase; future value depends on the successful ramp-up of Plywood and Particle Board segments and recovery of ROCE from single digits as assets begin to sweat.
From the Annual Report (Key Quotes)
“The project is on schedule and is expected to commence commercial production by Q4 of FY27.”
“Loss of ₹ 1.26 Crores has been recorded under other expenses after adjusting unrealised foreign exchange gain.”
“Segment Result for Panel & Allied Products recorded a loss of ₹ 3.06 Crores.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Greenlam Industries Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.